I just skimmed through last few pages, and I think people are complaining about non-existence issue here. They are charing VAT because they don't know what your plan is at the end of hosting service; whether you want to continue hosting or you want your cards back (you paid full price for them, remember?). They are doing this to protect themselves, and if it is something you disagree with, I'd just request a refund before it's too late. Maybe they could work something out with you to ensure your cards will always stay in the US (like an agreement to sell at market price or donating them to a data center or something in the event of hosting service going belly up), just something to think about.
That's illegal, period.
They run established buisiness companies, they're not small time DIYers out of a developping country.